The National Company Law Tribunal on Wednesday rejected pleas from six aircraft lessors that included demands for barring Go First from using their aircraft as well as allowing leasing companies to appoint an inspector to examine their aircraft, engines and other parts.
The insolvency court, which had admitted GoFirst’s plea seeking insolvency resolution on May 10, maintained that an order refraining the resolution professional from using the aircraft would amount to “corporate death of the Corporate Debtor, leaving no scope for resolution of the Corporate Debtor” as the sole essence of its business would be taken away.
It added that the DGCA had not deregistered the aircraft, which were therefore available for use by GoFirst. The court also said that its May 10 order, which said that it was the duty of the interim resolution professional to ensure the airline was a going concern, requires that the aircraft have to be flown.
On the issue of allowing lessors to appoint an agency or inspectors to scrutinise the aircraft, the court said that it would amount to “impediment to the effective discharge of the duties of the Resolution professional”, who had already been instructed to maintain the aircraft.
The only relief that was granted to lessors was on their plea seeking protection and maintenance of aircraft and engines where the court reiterated that it was RP’s responsibility to do so.
The court also noted that the termination notices issued by leasing companies after the airline approached the NCLT seeking insolvency resolution was to evade the moratorium it had granted under which the airline was given protection against any adverse action from lessors and creditors.
On July 5, Delhi High Court passed an interim order on the plea of another eight aircraft lessors and allowed them to carry out inspection and interim maintenance tasks of their aircraft twice a month.
